FORMER deputy minister, National Assembly parliamentarian and Swapo Party Youth League leader Paulus Kapia has fallen far and been humbled as a result of the fallout from the Social Security Commission’s ill-fated investment of N$30 million in early 2005, his defence lawyer said in the Windhoek High Court yesterday.
Over the past 13 years – since a Companies Act inquiry into the financial collapse of asset management company Avid Investment Corporation took place in the High Court in mid-2005 – legal expenses have already cost Kapia more than N$3 million, while he has suffered “a big and bad fall, politically”, defence lawyer Sisa Namandje remarked while addressing judge Christie Liebenberg in a pre-sentence hearing, following Kapia’s conviction on a charge of fraud.
Namandje said Kapia (50) has been on a frightening and tiring journey over the past 13 years, after the disappearance of N$30 million that the SSC invested with Avid Investment Corporation and the institution of criminal charges against him and six co-accused who ended up being tried in the High Court after they were first indicted in April 2008.
Before the SSC discovered that the money invested with Avid had disappeared, Kapia became a parliamentarian, and was appointed a deputy minister in March 2005. His involvement with Avid, of which he is a former director, had devastating consequences for him, though, and cost him his political positions, Namandje said.
Kapia became an MP again from 2010 to 2015, but at the moment, he is only a branch mobiliser for Swapo in the Oshana region, Namandje said. He has been humbled and has paid over the past 13 years, Namandje added.
He also told the judge he had instructions from Kapia, who elected not to testify in mitigation of sentence, to place on record that he had remorse and regretted that the SSC’s money was lost.
Kapia was pleading to be given a second chance, Namandje said. Arguing that a jail term would not be appropriate, he asked the judge to show his client compassion and mercy.
Inez /Gâses, the accountant who was the chairperson of Avid, testified in mitigation of sentence yesterday. She told the court her biggest mistake and regret was that she gave in to her cousin Lazarus Kandara’s request that she should temporarily stand in as a director of Avid on his behalf.
/Gâses (42) said she was young and trusting when she agreed to Kandara’s request, which ended up putting her through an ordeal that has affected her emotionally, psychologically, financially and health-wise.
“My lord, I accept responsibility for my negligence,” /Gâses said, before telling the judge that the fact she was found guilty of fraud would probably end her professional career as an accountant. “I’ve learned a huge lesson,” /Gâses said.
Her defence lawyer, Petrie Theron, argued that she has proven she is someone who has been productively employed and has been contributing to the country’s economy since 2005. The judge should consider giving /Gâses a suspended sentence, a fine or community service, instead of sending her to prison, Theron argued.
Judge Liebenberg found Kapia, fellow former MP Ralph Blaauw, and /Gâses guilty of fraud on 11 May. That charge flowed from the role they played in persuading Social Security Commission managers to invest N$30 million with Avid Investment Corporation in January 2005. The judge also found that they were not aware of a plan to steal the SSC’s money or were involved in the theft of the parastatal’s money.
Nico Josea, the sole shareholder of Namangol Investments, which received N$29,5 million from an Avid bank account after the SSC’s N$30 million had been transferred to Avid’s account, was found guilty of the theft of N$29,5 million belonging to the SSC, and of reckless or fraudulent conduct of business.
Lawyer Sharon Blaauw, who was one of the directors of Avid when the company clinched the investment deal with the SSC, was acquitted of fraud, but found guilty of reckless conduct of business. She signed a couple of Avid board resolutions without verifying the correctness of the documents, which were presented to the SSC to put it at ease about the safety of the investment it made through Avid, judge Liebenberg found.
Kandara, who set up Avid and was the company’s de facto chief executive officer, shot himself in front of the Windhoek Central Police Station on 24 August 2005, a few hours after his arrest.
The pre-sentence hearing is scheduled to continue today.
